Figure on 3-4 months from the time the package is submitted to the bank
I have heard that BofAâ€™s national average for closing a short sale is 4.5 months.
Short sales are always a challenge.
Keep in mind, the process to submit an offer can take a week or longer since the listing agent has to be acknowledged by the bank in the system and they have to upload the offer. If they don't have all the required information, including the buyers date of birth and social security number ( which in a traditional sale they don't have), ,they have to ask the other agent, upload the information, and then give the bank 3-5 days to respond. All of these little things add up to more delays so if you are wanting to compete a short sale in a short time, the best thing you can do is make sure all parties are committed to making it happen and can turn around documents as quickly as possible since the banks process is slow to begin with.
That being said, we didn't cover the other issues, such as, is there really a hardship, is there insurance on the property, who are the investors making the decision, all which lead up to, is the bank really going to approve the short sale after all this work.
If you are in contract on a short sale best of luck to you. The success rate is a lot better than it used to be:)
You should plan on a 75-90 days before closing because once you received the approval ~60 days, it will take your lender at least 21 days to process the loan for settlement.
Remember that this is a Shortsale, not an REO.
You just have to be patient; We know for a fact that the person you want to talk to at BofA has several hundred FILES on her desk.
Please do not expect your Agent to call them every day, or even every week. It doesn't help, it actually hurts!
Good luck and may God bless
The seller's agent or negotiator uploads the info into the system. Then they have to wait for the bank's processor/negotiator to assign the next task. The system has improved and the approvals seem to be coming along faster than before.
Waiting is the hard part. Check in with your agent once a week and ask for an update. Hang in there!
Dot Chance, RealtorÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
DRE License #01494182
Keller Williams Realty World Media Center
WHEN YOU THINK OF REAL ESTATE...Think DotChance.com! My business thrives from your referrals!
Jack Gillis, M.B.A., J.D. â”‚ RealtorÂ®
Jack Gillis Realty Advisors
United Real Estate, Broker
5430 LBJ Freeway | Suite 280
Dallas, TX 75240